Document and Entity Information (USD $)
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3 Months Ended | ||
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Mar. 31, 2011
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Apr. 27, 2011
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Jun. 30, 2010
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Document and Entity Information [Abstract] | |||
Entity Registrant Name | NVR INC | ||
Entity Central Index Key | 0000906163 | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2011 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2011 | ||
Document Fiscal Period Focus | Q1 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3,693,820,000 | ||
Entity Common Stock, Shares Outstanding | 5,883,235 |
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- Definition
If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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- Definition
End date of current fiscal year in the format --MM-DD. No definition available.
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- Definition
This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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- Definition
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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- Definition
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements this will be the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type should be limited to the same value as the supporting SEC submission type. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, NCSR, N-Q, and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No definition available.
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- Definition
Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A. No definition available.
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- Details
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Also includes the carrying amount as of the balance sheet date of liabilities not otherwise specified in the taxonomy. Also serves as the sum of liabilities not individually reported in the financial statements, or not separately disclosed in notes. No definition available.
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- Definition
Carrying amount as of the balance sheet date of lots and capitalized construction costs of homes covered under sales agreements with customers. No definition available.
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- Definition
Non-recourse debt related to consolidated variable interest entities. No definition available.
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- Definition
Carrying amount as of the balance sheet date of lots and capitalized construction costs of homes not covered under sales agreements with customers. No definition available.
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
For an unclassified balance sheet, the amount due from customers or clients for goods or services that have been delivered or sold in the normal course of business, reduced to their estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered. Examples include taxes, interest, rent and utilities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Value received from shareholders in common stock-related transactions that are in excess of par value or stated value and amounts received from other stock-related transactions. Includes only common stock transactions (excludes preferred stock transactions). May be called contributed capital, capital in excess of par, capital surplus, or paid-in capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Amount equal to the present value (the principal) at the beginning of the lease term of minimum lease payments during the lease term (excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, together with any profit thereon) net of payments or other amounts applied to the principal through the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. This caption alerts the reader that one or more notes to the financial statements disclose pertinent information about the entity's commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Value of additional series of common stock issued to a trust (for example, a 'rabbi trust') set up specifically to accumulate stock for the sole purpose of distribution to participating employees. This trust does not allow employees to immediately or after a holding period diversify into nonemployer securities. The deferred compensation plan for which this trust is set up must be settled by the delivery of a fixed number of shares of employer stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Dollar value of issued common stock whether issued at par value, no par or stated value. This item includes treasury stock repurchased by the entity. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Refundable consideration, usually cash, held by the entity pending satisfactory completion of the entity's obligations or pending the closing of a contract. No definition available.
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- Definition
Aggregate carrying value as of the balance sheet date of the liabilities for all deferred compensation arrangements. Represents currently earned compensation under compensation arrangements that is not actually paid until a later date. No definition available.
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- Definition
Carrying value of amounts transferred to third parties for security purposes that are expected to be returned or applied towards payment in the future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net carrying amount as of the balance sheet date of the sum of the various components of an operative builder's inventory, including finished homes. Operative builders primarily consist of entities that develop land, construct residential homes and commercial and industrial buildings thereon, and sell them to home buyers and operators of the commercial and industrial properties. No definition available.
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- Definition
Carrying amount as of the balance sheet date, net of valuation allowances and impairment losses, of costs of land expected to be developed in the near term plus capitalized costs of development, for purposes of selling completed units to home buyers or commercial or industrial entities.. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No definition available.
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- Definition
Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Mortgage loans to individuals not classified as held for investment but are held for sale to permanent investors. Permanent investors are enterprises that invest in mortgage loans for their own accounts. Examples of permanent investors are insurance companies, commercial or mutual savings banks, savings and loan associations, pension plans and real estate investment trusts. Mortgage loans exclude mortgage-backed securities which are considered a debt security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date of assets not otherwise specified in the taxonomy. Also serves as the sum of assets not individually reported in the financial statements, or not separately disclosed in notes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount of reorganization value in excess of amounts allocable to identifiable assets at the balance sheet date after fresh-start adjustments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date of unprocessed goods that will be used in the course of a construction project which will become a part of the finished inventory. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Value of common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Treasury stock is issued but is not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Quantifies the net carrying amount of the entity's assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Quantifies the net carrying amount of the entity's liabilities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of the outstanding short-term borrowings under a revolving line of credit used by mortgage bankers to finance the origination or purchase of loans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
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Mar. 31, 2011
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Dec. 31, 2010
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Shareholders' equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 20,556,198 | 20,557,913 |
Deferred compensation trust, shares | 152,964 | 158,894 |
Treasury stock, shares | 14,688,939 | 14,894,357 |
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- Definition
The number of shares issued pursuant to the terms of the deferred compensation plan as of the balance sheet date. No definition available.
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Condensed Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | |
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Mar. 31, 2011
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Mar. 31, 2010
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Income before taxes | $ 24,835 | $ 52,731 |
Income tax expense | (9,661) | (20,644) |
Net income | 15,174 | 32,087 |
Basic earnings per share | $ 2.61 | $ 5.29 |
Diluted earnings per share | $ 2.52 | $ 5.01 |
Basic average shares outstanding | 5,823 | 6,066 |
Diluted average shares outstanding | 6,020 | 6,399 |
Homebuilding:
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Revenues | 502,744 | 577,381 |
Other income | 1,458 | 2,369 |
Cost of sales | (417,920) | (471,069) |
Selling, general and administrative | (67,188) | (60,741) |
Operating income | 19,094 | 47,940 |
Interest expense | (222) | (2,171) |
Income before taxes | 18,872 | 45,769 |
Mortgage Banking:
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Interest expense | (274) | (264) |
Mortgage banking fees | 11,760 | 12,833 |
Interest income | 1,115 | 756 |
Other income | 39 | 166 |
General and administrative | (6,677) | (6,529) |
Income before taxes | $ 5,963 | $ 6,962 |
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- Definition
Income from continuing operations before income taxes. No definition available.
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- Definition
The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The noninterest income derived from mortgage banking activities (fees and commissions), excluding fees earned from servicing third-party assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line. No definition available.
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- Definition
The aggregate costs related to design, development, general contracting, remodeling, and renovation services for residential buildings, including single-family houses, multifamily housing, townhomes, apartments, and modular housing. No definition available.
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- Definition
Revenue related to the sale of homes and home building activities including design, development, general contracting, and renovation services for residential buildings, including single-family houses, multifamily housing, townhouses, apartments, and modular housing. No definition available.
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- Definition
The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Interest and fee income from mortgage loans considered to be held-for-sale. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cost of borrowed funds accounted for as interest that was charged against earnings during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net result for the period of deducting operating expenses from operating revenues. No definition available.
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- Definition
Reflects the sum of all other revenue and income recognized by the entity in the period not otherwise specified in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The total amount of other operating income, not previously categorized, from items that are associated with the entity's normal revenue producing operation. No definition available.
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- Definition
The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Number of [basic] shares, after adjustment for contingently issuable shares and other shares not deemed outstanding, determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The charge against earnings resulting from the aggregate write down of deposits paid to secure the right to purchase finished lots under fixed price purchase agreements from their carrying value to their fair value. No definition available.
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- Definition
Distribution of earnings from unconsolidated joint ventures. No definition available.
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- Definition
The cash inflow associated with the amount of dividends or other distributions received from unconsolidated subsidiaries, certain corporate joint ventures, and certain noncontrolled corporations that constitute a return of investment; these investments are accounted for under the equity method of accounting. This element excludes distributions that are classified as operating activities. No definition available.
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- Definition
The net change during the period in the amount of accounts payable, accrued expenses and customer deposits. No definition available.
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- Definition
Investment in newly formed consolidated joint venture. No definition available.
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- Definition
Net borrowings under non-recourse debt related to consolidated variable interest entities. No definition available.
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- Definition
The net cash inflow (outflow) for borrowings and outflow for obligations for leases meeting the criteria for capitalization. No definition available.
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- Details
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change between the beginning and ending balance of cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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X | ||||||||||
- Definition
The aggregate expense recognized in the current period that allocates the cost of tangible assets, intangible assets, or depleting assets to periods that benefit from use of the assets. No definition available.
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- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element reduces net cash provided by operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The gains and losses included in earnings that represent the difference between the sale price and the carrying value of loans made to finance real estate acquisitions. This element refers to the gain (loss) and not to the cash proceeds of the sale. This element is a noncash adjustment to net income when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The net change during the reporting period in moneys given as security or collateral for items acquired or borrowed on a temporary basis. Deposits may also be paid as initial payment of the cost of acquisition or for the right to enter into a contract or agreement. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The net change during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change during the reporting period in the total amount due within one year (or one operating cycle) from all parties, associated with underlying transactions that are classified as operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of cash paid during the current period for interest owed on money borrowed, net of interest capitalized. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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X | ||||||||||
- Definition
The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of cash paid for the origination of mortgages that are held for sale. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
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- Definition
The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow to acquire a debt financial instrument for which the entity has the ability and intent to hold until maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow associated with the investment in or advances to an entity in which the reporting entity shares control of the entity with another party or group. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cash inflow from collection of repayments from borrowers on loans that are secured with real estate mortgages and are held with the intention to resell in the near future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The cash inflow associated with the maturity, prepayments and calls (requests for early payments) of debt securities designated as held-to-maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The cash inflow from sales of loans that are secured with real estate mortgages and are held with the intention to resell in the near future. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The cash inflow from the sale of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
The cash inflow associated with the amount received from holders exercising their stock options. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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Basis of Presentation
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3 Months Ended |
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Mar. 31, 2011
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|
Basis of Presentation [Abstract] | |
Basis of Presentation |
1. Basis of Presentation
The accompanying unaudited, condensed consolidated financial statements include the accounts
of NVR, Inc. (“NVR” or the “Company”) and its subsidiaries and certain other entities in which the
Company is deemed to be the primary beneficiary (see Note 2 to the accompanying financial
statements). Intercompany accounts and transactions have been eliminated in consolidation. The
statements have been prepared in conformity with accounting principles generally accepted in the
United States of America (“GAAP”) for interim financial information and with the instructions to
Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by GAAP for complete financial statements. Because the accompanying condensed
consolidated financial statements do not include all of the information and footnotes required by
GAAP, they should be read in conjunction with the financial statements and notes thereto included
in the Company’s 2010 Annual Report on Form 10-K. In the opinion of management, all adjustments
(consisting only of normal recurring accruals except as otherwise noted herein) considered
necessary for a fair presentation have been included. Operating results for the three-month period
ended March 31, 2011 are not necessarily indicative of the results that may be expected for the
year ending December 31, 2011.
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
For the three-month periods ended March 31, 2011 and 2010, comprehensive income equaled net
income; therefore, a separate statement of comprehensive income is not included in the accompanying
financial statements.
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- Details
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- Definition
Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Variable Interest Entities and Joint Ventures
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Mar. 31, 2011
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Variable Interest Entities and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities and Joint Ventures |
2. Variable Interest Entities and Joint Ventures
Fixed Price Purchase Agreements
NVR generally does not engage in the land development business. Instead, the Company
typically acquires finished building lots at market prices from various development entities under
fixed price purchase agreements. The purchase agreements require deposits that may be forfeited if
NVR fails to perform under the agreement. The deposits required under the purchase agreements are
in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the
aggregate purchase price of the finished lots.
NVR believes this lot acquisition strategy reduces the financial requirements and risks
associated with direct land ownership and land development. NVR may, at its option, choose for any
reason and at any time not to perform under these purchase agreements by delivering notice of its
intent not to acquire the finished lots under contract. NVR’s sole legal obligation and economic
loss for failure to perform under these purchase agreements is limited to the amount of the deposit
pursuant to the liquidated damage provisions contained within the purchase agreements. In other
words, if NVR does not perform under a purchase agreement, NVR loses only its deposit. None of the
creditors of any of the development entities with which NVR enters fixed price purchase agreements
have recourse to the general credit of NVR. NVR generally does not have any specific performance
obligations to purchase a certain number or any of the lots, nor does NVR guarantee completion of
the development by the developer or guarantee any of the developers’ financial or other
liabilities.
NVR is not involved in the design or creation of any of the development entities from which
the Company purchases lots under fixed price purchase agreements. The developer’s equity holders
have the power to direct 100% of the operating activities of the development entity. NVR has no
voting rights in any of the development entities. The sole purpose of the development entity’s
activities is to generate positive cash
flow returns to its equity holders. Further, NVR does not share in any of the profit or loss
generated by the project’s development. The profits and losses are passed directly to the
developer’s equity holders.
The deposit placed by NVR pursuant to the fixed price purchase agreement is deemed to be a
variable interest in the respective development entities. Those development entities are deemed to
be variable interest entities. Therefore, the development entities with which NVR enters fixed
price purchase agreements, including the joint venture limited liability corporations, as discussed
below, are evaluated for possible consolidation by NVR. An enterprise must consolidate a VIE when
that enterprise has a controlling financial interest in the VIE. An enterprise is deemed to have a
controlling financial interest if it has i) the power to direct the activities of a variable
interest entity that most significantly impact the entity’s economic performance, and ii) the
obligation to absorb losses of the VIE that could be significant to the VIE or the rights to
receive benefits from the VIE that could be significant to the VIE.
NVR believes the activities that most significantly impact a development entity’s economic
performance are the operating activities of the entity. Unless and until a development entity
completes finished building lots through the development process to be able to sell, the process of
which the development entities’ equity investors bear the full risk, the entity does not earn any
revenues. The operating development activities are managed solely by the development entity’s
equity investors.
The development entities with which NVR contracts to buy finished lots typically select the
respective projects, obtain the necessary zoning approvals, obtain the financing required with no
support or guarantees from NVR, select who will purchase the finished lots and at what price, and
manage the completion of the infrastructure improvements, all for the purpose of generating a cash
flow return to the development entity’s equity holders and all independent of NVR. The Company
possesses no more than limited protective legal rights through the purchase agreement in the
specific finished lots that it is purchasing, and NVR possesses no participative rights in the
development entities. Accordingly, NVR does not have the power to direct the activities of a
developer that most significantly impact the developer’s economic performance. For this reason,
NVR has concluded that it is not the primary beneficiary of the development entities with which the
Company enters fixed price purchase agreements, and therefore, NVR does not consolidate any of
these VIEs.
As discussed above, NVR’s sole legal obligation and economic loss for failure to perform under
these purchase agreements is limited to the amount of the deposit pursuant to the liquidated damage
provisions contained within the purchase agreements and in very limited circumstances, specific
performance obligations. NVR’s total risk of loss related to contract land deposits as of March
31, 2011 and December 31, 2010, is as follows:
Joint Ventures
On a limited basis, NVR also obtains finished lots using joint venture limited liability
corporations (“JVs”). All JVs are typically structured such that NVR is a non-controlling member
and is at risk only for the amount it has invested. NVR is not a borrower, guarantor or obligor
on any debt of the JVs. The Company enters into a standard fixed price purchase agreement to
purchase lots from these JVs, and as a result has a variable interest in these JVs.
At March 31, 2011, the Company had an aggregate investment totaling approximately $33,000 in
three JVs that are expected to produce approximately 1,000 finished lots. At March 31, 2011, NVR
had additional funding commitments in the aggregate totaling $5,000 to one of the three JVs. The
Company has determined that it is not the primary beneficiary of two of the JVs because NVR and the
other JV partner share power. NVR has concluded that it is the primary beneficiary of the
remaining JV because the Company has the controlling financial interest in the JV. The condensed
balance sheets at March 31, 2011 and December 31, 2010, of the consolidated JV are as follows:
|
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- Details
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X | ||||||||||
- Definition
Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Land Under Development
|
3 Months Ended |
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Mar. 31, 2011
|
|
Land Under Development [Abstract] | |
Land Under Development |
3. Land Under Development
On a limited basis, NVR directly acquires raw parcels of land already zoned for its intended
use to develop into finished lots. Land under development includes the land acquisition costs,
direct improvement costs, capitalized interest, where applicable, and real estate taxes. As of
March 31, 2011, NVR directly owned three separate raw parcels of land with a carrying value of
approximately $77,100 that it intends to develop into approximately 850 finished lots for use in
its homebuilding operations. All of the raw parcels are located in the Washington, D.C.
metropolitan area. Based on current market conditions, NVR may, on a very limited basis, directly
acquire additional raw parcels to develop into finished lots. See the Overview section of Item 2,
Management’s Discussion and Analysis of Financial Condition and Results of Operations included
herein for additional discussion.
|
X | ||||||||||
- Definition
Land under development. No definition available.
|
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- Details
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Contract Land Deposits
|
3 Months Ended |
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Mar. 31, 2011
|
|
Contract Land Deposits [Abstract] | |
Contract Land Deposits |
4. Contract Land Deposits
As of March 31, 2011, NVR controlled approximately 51,000 lots with deposits in cash and
letters of credit of $191,400 and $4,500, respectively. At December 31, 2010, NVR controlled
approximately 50,400 lots with deposits in cash and letters of credit totaling approximately
$174,300 and $6,600, respectively. During the three-month period ended March 31, 2011, the Company
recognized a pre-tax charge of approximately $1,300 related to the impairment of contract land
deposits. For the three-month period ended March 31, 2010, the Company recognized a pre-tax
recovery of approximately $1,900 of contract land deposits previously determined to be
uncollectible. The contract land deposit asset is shown net of an approximate $74,600 and $73,500
impairment valuation allowance at March 31, 2011 and December 31, 2010, respectively.
|
X | ||||||||||
- Definition
The carrying amount as of the balance sheet date of deposits paid to secure the right to purchase finished lots under fixed price purchase agreements. No definition available.
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- Details
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Earnings per Share
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Mar. 31, 2011
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Earnings per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share |
5. Earnings per Share
The following weighted average shares and share equivalents are used to calculate basic and
diluted earnings per share for the three months ended March 31, 2011 and 2010:
The assumed proceeds used in the treasury method for calculating NVR’s diluted earnings
per share includes the amount the employee must pay upon exercise, the amount of compensation cost
attributed to future services and not yet recognized, and the amount of tax benefits that would be
credited to additional paid-in capital assuming exercise of the option or the vesting of the
restricted share unit. The assumed amount credited to additional paid-in capital equals the tax
benefit from assumed exercise of stock options or the assumed vesting of restricted share units
after consideration of the intrinsic value upon assumed exercise less the actual stock-based
compensation expense to be recognized in the income statement from 2006 and future periods.
Stock options issued under equity benefit plans to purchase 442,095 and 27,076
shares of common stock were outstanding during the quarters ended March 31, 2011 and 2010,
respectively, but were not included in the computation of diluted earnings per share because the
effect would have been anti-dilutive.
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- Definition
This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Excess Reorganization Value
|
3 Months Ended |
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Mar. 31, 2011
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|
Excess Reorganization Value [Abstract] | |
Excess Reorganization Value |
6. Excess Reorganization Value
Reorganization value in excess of identifiable assets (“excess reorganization value”) is an
indefinite life intangible asset that was created upon NVR’s emergence from bankruptcy on September
30, 1993. Based on the allocation of the reorganization value, the portion of the reorganization
value which was not attributed to specific tangible or intangible assets has been reported as
excess reorganization value, which is treated similarly to goodwill. Excess reorganization value
is not subject to amortization. Rather, excess reorganization value is subject to an impairment
assessment on an annual basis or more frequently if changes in events or circumstances indicate
that impairment may have occurred. Because excess reorganization value was based on the
reorganization value of NVR’s entire enterprise upon bankruptcy emergence, the impairment
assessment is conducted on an enterprise basis based on the comparison of NVR’s total equity
compared to the market value of NVR’s outstanding publicly-traded common stock. The Company
completed the annual assessment of impairment during the first quarter of 2011 and determined that
there was no impairment of excess reorganization value.
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- Definition
Amount of reorganization value in excess of amounts allocable to identifiable assets at the balance sheet date after fresh-start adjustments. No definition available.
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Shareholders Equity
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Mar. 31, 2011
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Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity |
7. Shareholders’ Equity
A summary of changes in shareholders’ equity is presented below:
The Company repurchased 85,460 shares of its common stock during the three months ended
March 31, 2011 at an aggregate purchase price of $63,408. The Company settles option exercises by
issuing shares of treasury stock to option holders. Shares are relieved from the treasury account
based on the weighted average cost basis of treasury shares acquired. Approximately 291,000
options to purchase shares of the Company’s common stock were exercised during the three months
ended March 31, 2011.
|
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- Details
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- Definition
Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Product Warranties
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2011
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Product Warranties [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties |
8. Product Warranties
The Company establishes warranty and product liability reserves (“warranty reserve”) to
provide for estimated future expenses as a result of construction and product defects, product
recalls and litigation incidental to NVR’s homebuilding business. Liability estimates are
determined based on management’s judgment, considering such factors as historical experience, the
likely current cost of corrective action, manufacturers’ and subcontractors’ participation in
sharing the cost of corrective action, consultations with third party experts such as engineers,
and discussions with our general counsel and outside counsel retained to handle specific product
liability cases. The following table reflects the changes in the Company’s warranty reserve during
the three months ended March 31, 2011 and 2010:
|
X | ||||||||||
- Definition
The warranty and product liability resulting from construction product defects, product recalls and litigation. No definition available.
|
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- Details
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Segment Disclosures
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Segment Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Disclosures |
9. Segment Disclosures
The following disclosure includes four homebuilding reportable segments that aggregate
geographically the Company’s homebuilding operating segments, and the mortgage banking operations
presented as a single reportable segment. The homebuilding reportable segments are comprised of
operating divisions in the following geographic areas:
Homebuilding Mid Atlantic - Virginia, West Virginia, Maryland, and Delaware
Homebuilding North East - New Jersey and eastern Pennsylvania Homebuilding Mid East - Kentucky, New York, Ohio, western Pennsylvania and Indiana Homebuilding South East - North Carolina, South Carolina, Florida and Tennessee Homebuilding profit before tax includes all revenues and income generated from the sale of
homes, less the cost of homes sold, selling, general and administrative expenses, and a corporate
capital allocation charge. The corporate capital allocation charge eliminates in consolidation, is
based on the segment’s average net assets employed, and is charged using a consistent methodology
in the periods presented. The corporate capital allocation charged to the operating segment allows
the Chief Operating Decision Maker to determine whether the operating segment’s results are
providing the desired rate of return after covering the Company’s cost of capital. The Company
records charges on contract land deposits when it is determined that it is probable that recovery
of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits
are charged to the operating segment upon the determination to terminate a finished lot purchase
agreement with the developer, or to restructure a lot purchase agreement resulting in the
forfeiture of the deposit. Mortgage banking profit before tax consists of revenues generated from
mortgage financing, title insurance and closing services, less the costs of such services and
general and administrative costs. Mortgage banking operations are not charged a capital allocation
charge.
In addition to the corporate capital allocation and contract land deposit impairments
discussed above, the other reconciling items between segment profit and consolidated profit before
tax include unallocated corporate overhead (including all management incentive compensation),
equity-based compensation expense, consolidation adjustments and external corporate interest
expense. NVR’s overhead functions, such as accounting, treasury, human resources, etc., are
centrally performed and the costs are not allocated to the Company’s operating segments.
Consolidation adjustments consist of such items necessary to convert the reportable segments’
results, which are predominantly maintained on a cash basis, to a full accrual basis for external
financial statement presentation purposes, and are not allocated to the Company’s operating
segments. Likewise, equity-based compensation expense is not charged to the operating segments.
Following are tables presenting revenues, segment profit and segment assets for each
reportable segment, with reconciliations to the amounts reported for the consolidated enterprise,
where applicable:
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This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Fair Value
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Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value |
10. Fair Value
Financial Instruments
Except as otherwise noted here, NVR believes that insignificant differences exist between the
carrying value and the fair value of its financial instruments.
Derivative Instruments and Mortgage Loans Held for Sale
In the normal course of business, NVR’s mortgage banking segment enters into contractual
commitments to extend credit to buyers of single-family homes with fixed expiration dates. The
commitments become effective when the borrowers “lock-in” a specified interest rate within time
frames established by NVR. All mortgagors are evaluated for credit worthiness prior to the
extension of the commitment. Market risk arises if interest rates move adversely between the time
of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To
mitigate the effect of the interest rate risk inherent in providing rate lock commitments
to borrowers, the Company enters into optional or mandatory delivery forward sale contracts to sell
whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock in
an interest rate and price for the sale of loans similar to the specific rate lock commitments.
NVR does not engage in speculative or trading derivative activities. Both the rate lock
commitments to borrowers and the forward sale contracts to broker/dealers are undesignated
derivatives and, accordingly, are marked to fair value through earnings. At March 31, 2011, there
were contractual commitments to extend credit to borrowers aggregating $148,385 and open forward
delivery contracts aggregating $236,727.
GAAP assigns a fair value hierarchy to the inputs used to measure fair value. Level 1 inputs
are quoted prices in active markets for identical assets and liabilities. Level 2 inputs are
inputs other than quoted market prices that are observable for the asset or liability, either
directly or indirectly. Level 3 inputs are
unobservable inputs. The fair value of the Company’s rate lock commitments to borrowers and
the related input levels includes, as applicable:
The assumed gain/loss considers the amount that the Company has discounted the price to the
borrower from par for competitive reasons and the excess servicing to be received or buydown fees
to be paid upon securitization of the loan. The excess servicing and buydown fees are calculated
pursuant to contractual terms with investors. To calculate the effects of interest rate movements,
the Company utilizes applicable published mortgage-backed security prices, and multiplies the price
movement between the rate lock date and the balance sheet date by the notional loan commitment
amount. The Company sells all of its loans on a servicing released basis, and receives a servicing
released premium upon sale. Thus, the value of the servicing rights, which averaged 123 basis
points of the loan amount as of March 31, 2011, is included in the fair value measurement and is
based upon contractual terms with investors and varies depending on the loan type. The Company
assumes an approximate 9% fallout rate when measuring the fair value of rate lock commitments.
Fallout is defined as locked loan commitments for which the Company does not close a mortgage loan
and is based on historical experience.
The fair value of the Company’s forward sales contracts to broker/dealers solely considers the
market price movement of the same type of security between the trade date and the balance sheet
date (level 2). The market price changes are multiplied by the notional amount of the forward
sales contracts to measure the fair value.
Mortgage loans held for sale are recorded at fair value when closed, and thereafter are
carried at the lower of cost or fair value, net of deferred origination costs, until sold. The
fair value of loans held-for-sale of $105,611 included in the accompanying condensed consolidated
balance sheet has been increased by $954 from the aggregate principal balance of $104,657.
The undesignated derivative instruments are included in the accompanying condensed
consolidated balance sheet as follows:
The unrealized gain or loss from the change in the fair value measurements is included in
earnings as a component of mortgage banking fees in the accompanying condensed consolidated
statements of income as follows:
The fair value measurement will be impacted in the future by the change in the value of
the servicing rights and the volume and product mix of the Company’s closed loans and locked loan
commitments.
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This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Debt
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3 Months Ended |
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Mar. 31, 2011
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Debt [Abstract] | |
Debt |
11. Debt
NVR’s mortgage banking operations, NVR Mortgage Finance, Inc. (“NVRM”), provides for its
mortgage origination activities through a revolving mortgage repurchase facility (the “Repurchase
Facility”). The Repurchase Facility provides for loan purchases up to $100,000, subject to certain
sublimits. In addition, the Repurchase Agreement provides for an accordion feature under which
NVRM may request that the aggregate commitments under the Repurchase Agreement be increased to an
amount up to $125,000. The Repurchase Agreement expires on August 2, 2011.
At March 31, 2011, there was approximately $75,300 outstanding under the Repurchase Facility,
which is included in Mortgage Banking “Note payable” in the accompanying condensed consolidated
financial statements. Amounts outstanding under the Repurchase Facility are collateralized by the
Company’s mortgage loans held for sale, which are included in assets in the March 31, 2011 balance
sheet in the accompanying condensed consolidated financial statements. As of March 31, 2011,
borrowing base limitations reduced the amount available for borrowing to approximately $99,000.
The average Pricing Rate on outstanding balances at March 31, 2011 was 4.1%.
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Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Commitments and Contingencies
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3 Months Ended |
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Mar. 31, 2011
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Commitments and Contingencies [Abstract] | |
Commitments and Contingencies |
12. Commitments and Contingencies
On July 18, 2007, former and current employees filed lawsuits against the Company in the Court
of Common Pleas in Allegheny County, Pennsylvania and Hamilton County, Ohio, in Superior Court in
Durham County, North Carolina, and in the Circuit Court in Montgomery County, Maryland, and on July
19, 2007 in the Superior Court in New Jersey, alleging that the Company incorrectly classified its
sales and marketing representatives as being exempt from overtime wages. These lawsuits are similar
in nature to another lawsuit filed on October 29, 2004 by another former employee in the United
States District Court for the Western District of New York. The complaints seek injunctive relief,
an award of unpaid wages, including fringe benefits, liquidated damages equal to the overtime wages
allegedly due and not paid, attorney and other fees and interest, and where available, multiple
damages. The suits were filed as purported class actions. However, while a number of individuals
have filed consents to join and assert federal claims in the New York action, none of the groups of
employees that the lawsuits purport to represent have been certified as a class. The lawsuits filed
in Ohio, Pennsylvania, Maryland, New Jersey and North Carolina have been stayed pending further
developments in the New York action.
The Company believes that its compensation practices in regard to sales and marketing
representatives are entirely lawful and in compliance with two letter rulings from the United
States Department of Labor (“DOL”) issued in January 2007. The two courts to most recently consider
similar claims against other homebuilders have acknowledged the DOL’s position that sales and
marketing representatives were properly classified as exempt from overtime wages and the only court
to have directly addressed the exempt status of such employees concluded that the DOL’s position
was valid. Accordingly, the Company has vigorously defended and intends to continue to vigorously
defend these lawsuits. Because the Company is unable to determine the likelihood of an unfavorable
outcome of this case, or the amount of damages, if any, the Company has not recorded any associated
liabilities in the accompanying consolidated balance sheets.
In June 2010, the Company received a Request for Information from the United States
Environmental Protection Agency (the “EPA”) pursuant to Section 308 of the Clean Water Act. The
request seeks information about storm water discharge practices in connection with homebuilding
projects completed or underway by the Company. The Company has been cooperating with this request,
has provided information to the EPA and intends to continue cooperating with the EPA’s inquiries.
At this time, the Company cannot predict the outcome of this inquiry, nor can it reasonably
estimate the potential costs that may be associated with its eventual resolution.
In April 2010, NVRM received a Report of Examination (“ROE”) from the Office of the
Commissioner of Banks of the State of North Carolina (the “NCCOB”) reporting certain findings that
resulted from the NCCOB’s examination of selected files relating to loans originated by NVRM in
North Carolina between August 1, 2006 and August 31, 2009. The ROE alleged that certain of the loan
files reflected violations of North Carolina and/or U.S. lending or consumer protection laws. The
ROE requested that NVRM correct or otherwise address the alleged violations and in some instances
requested that NVRM undertake an examination of all of its other loans in North Carolina to
determine whether similar alleged violations may have occurred, and if so, to take corrective
action. NVRM responded to the ROE by letter dated June 10, 2010, contesting the findings and
allegations, providing factual information to correct certain of the findings, and refuting the
NCCOB’s interpretation of applicable law. On November 15, 2010, the NCCOB provided a written
response to NVRM’s June 10, 2010 letter closing certain alleged violations while reasserting
certain other violations. On January 12, 2011, NVRM responded to the NCCOB’s November 15, 2010
letter providing additional factual information to address the remaining findings, and refuting the
NCCOB’s interpretation of applicable law. Accordingly, while the outcome of the matter is currently
not determinable, the Company does not expect resolution of the matter to have a material adverse
effect on the Company’s financial position, results of operations or cashflows.
The Company and its subsidiaries are also involved in various other litigation arising in the
ordinary course of business. In the opinion of management, and based on advice of legal counsel,
this litigation is not expected to have a material adverse effect on the financial position,
results of operations or cashflows of the Company. Legal costs incurred in connection with
outstanding litigation are expensed as incurred.
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Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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